Litecoin Foundation & TokenPay Partner To Purchase German Bank, WEG Bank AG
Litecoin creator Charlie Lee announced big news for the crypto community today. On Twitter, Lee announced that Litecoin Foundation and TokenPay have entered into a strategic partnership to purchase a stake in a German bank called WEG Bank AG.
The partnership and purchase of the bank is expected to lead to the development of “many exciting consumer-driven crypto solutions.”
I'm excited to announce that @LTCFoundation and @TokenPay have entered into a strategic partnership to buy a stake in a German bank, WEG Bank AG. We plan to work on many exciting consumer-driven crypto solutions. Stay tuned! 🚀
— Charlie Lee [LTC⚡] (@SatoshiLite) July 10, 2018
Under the terms of the deal, TokenPay acquired 9.9% of the bank along with options to purchase approximately 90% overall of the bank pending customary regulatory approval.
The news was announced on July 10, 2018.
The partnership is expected to lead to a number of consumer-driven crypto fintech solutions. As explained in the press release:
“Specifically, TokenPay will directly benefit from Litecoin’s high-level blockchain mechanization capabilities.”
The press release also explains that the partnership will focus on several key areas “identified by analysts as critical to the success of the enterprise.”
Some of those areas include the TPAY cryptocurrency (the native token of TokenPay), the TPAY blockchain, eFin decentralized exchange and the EFIN coin, TokenSuisse asset management, and structured financial products.
Other areas of focus will include the WEG Bank FinTech platform, which offers high-demand consumer debit cards and the TokenPay Multisignature Transaction Engine designed for processing fast and secure crypto e-commerce payments for merchants.
There’s a reason why TokenPay specifically acquired 9.9% of WEG Bank: it was related to German banking laws.
“It is essential to understand that under German banking law no entity can own more than 9.9% of a bank without regulatory approval. Upon the granting of the approval, TokenPay plans to exercise its options to acquire the remaining shares of WEG Bank it is entitled to purchase.”
After receiving regulatory approval, TokenPay plans to acquire up to 90% overall of the bank.
Litecoin will contribute its services as a strategic marketing, blockchain technology, and logistics partner.
Overall, by acquiring the bank, TokenPay anticipates adding “several hundred thousand customers to its debit card solutions platform in the near term.”
“This partnership is a huge win-win for both Litecoin and TokenPay,” explained Charlie Lee in a statement.
“I’m looking forward to integrating Litecoin with the WEG Bank AG and all the various services it has to offer, to make it simple for anyone to buy and use Litecoin.”
TokenPay Swiss AG is a blockchain technology company best-known for TPAY, which they claim is the world’s most secure coin. TPAY relies on an advanced proof of stake algorithm as well as built-in Tor IP blocking.
Litecoin Foundation, meanwhile, is the Singapore-based non-profit organization in charge of advancing Litecoin “For the good of society by developing and promoting state-of-the-art blockchain technologies.” Litecoin’s creator, Charlie Lee, is the Managing Director of Litecoin Foundation.